ABSTRACT
The emergence of Korean multinational enterprises (MNEs) in industrial countries, notably in North America and Europe, marks a significant change in international investment flows. Korean investment in North America surged from USD 27 million in 1985 to USD 438 million in 1990, peaking at USD 1.5 billion in 1996. Investments from 1990–96 alone accounted for 84 per cent of cumulative flows since 1968. Korean firms started to invest significantly in Europe at the end of the 1980s, with a yearly flow of USD 64 million in 1990 and USD 658 million in 1996 (MOFE 1998); 95 per cent of cumulative investment in Europe since 1968 came between 1990 and 1996. As of April 1999, the outstanding amount invested in North America and Europe was, respectively, USD 5.9 billion and USD 3.6 billion, which represented 45.8 per cent of Korean outward direct investment (ODI) in the world, 43.6 per cent being located in Asia.
